Apple, one of the top-rated manufacturers of mobile devices is expecting some serious loss, as much as $9 billion. Apple CEO Tim Cook explains to his investors about the falling demand for iPhone in a letter. The reason is weak demand for iPhones and the cause for this is people are replacing their batteries with cheaper ones, rather than upgrading their phones.
Previously, Apple had compensated for degrading batteries that would cause the iPhone to shut down. As part of the compensation, Apple cut down the replacement fee from $79 to $29. Now that the batteries are replaced, the users are content with their present models rather than buying the latest iPhone, resulting in less demand. After Apple admitted that it would be throttling the older models, people learnt to turn off the power-saver feature as well!
Once the batteries were replaced, people stopped having “issues” with the older models, it was found. This obviously meant the primary reason to upgrade the phone vanished as well. Unfortunately, we won’t be hearing how many devices Apple sold. A couple of months ago, Apple announced that it would no longer disclose the number of iPhones, iPads, and Macs it had sold. This would keep us in the blind about the demands for Apple products, but it seems like there’s really low demand.